Taxi Review Report
Introduction Singapore, an island country with a population of 5 million and a land area of 710 square kilometers 1 is known to have one of the best public transport system in the world. The public transport system is mainly made up of the MR., buses, ALERT and Taxis. Taxis are considered a high end form of public transport as passengers are able to enjoy a more personalized transport service at a premium fare relative to the other forms of transport systems.
With the fast growing population and an increasing number of tourist arrivals, the demand for taxis is increasing at a rapid rate and we ores there is room for additional taxi operators in the industry.
This Oligopoly market currently consists of mainly 7 taxi operators that collectively own a total of 26,000 2 taxis on the road. They are offering the same form of transport service to consumers. In recent years, the industry has been liberalized slightly whereby fares are De-regulated so that individual operators can decide and set their own fares within the stipulated range.
New entrants are also allowed as long as they meet the pre-requisite criteria. L The industry as illustrated via SOOT analysis Strengths Singapore population tops 5. 8 million in Junk 2010 3.
Tourist arrivals have also been on a steady increase and we foresee the rising trend to continue owing to Singapore latest attractions, the 2 newly completed integrated resorts as well as the Universal Studio Theme Park. With these increasing numbers, the demand of taxi will also increase. Companies in Singapore announced an average 4. 5 % payment increase in 2011 4.
With increasing, more people will be willing and be able to afford to take taxis.
The waiting time for taxis has been increasing through the years and many commuters had expressed that they are unable to get a taxi especially during the ironing peak hours foam – am and evening peak hours of pm to pm. These illustrate that there is a strong demand for more taxis in Singapore. Weaknesses The taxi industry is an oligopoly market whereby the barriers to entry are relatively higher compared to other industries and it is very competitive.
In order to protect commuters as well as other road users, the government has imposed stringent rules and regulations on taxi operators. For example, in the Central Business Districts, taxis are only allowed to drop or pick up passengers at designated taxi-stands, else, they will be fined. Singapore government had also designed a vehicle quota system to regulate vehicle population growth rate, the system will require a certificate of entitlement (CEO) to register a new vehicles and taxis 1, as commercial vehicles are also subjected to the above.
The costs of CEO, together with the road tax had resulted in high operating costs for taxi operators. High fuel cost is another concern of taxi operators here as these higher operating costs will deplete the income of taxi drivers. Opportunity Taxi, being a premium form of public transport, can be seen as a substitute transport or private car owners. If the CEO and road tax are to continue to increase, some car owners may consider switching to use taxis instead of driving themselves!
In recent years, we are also seeing more shopping centers springing up in Singapore. This also transport for shoppers and their shopping bags.
The government had also relaxed its rules on the night entertainment industry and allow them to operate past midnight. This provide another opportunity for taxi operators as these party goers will usually choose taxis as their preferred mode of transport home in the late nights. Threat
The main challenges for taxi operators include : * The management and deployment of taxis during peak hours so as to meet the demand surge; * To shorten passengers waiting time for taxi during peak and off peak periods; * Control accident rates of taxis; * Attract competent and road as’. N. Y taxi drivers for the Job. Conclusion In conclusion, there is definitely room for more taxis in Singapore as the current supply of taxis on the road is far less than the demand.
Government is formulating policies to attract more foreign tourists as inbound tourism is an important source of income for Singapore.